We're Not All in the Same Boat

A February 2010 report prepared by the Labor Market Studies Program at Northeastern Univ. in Boston points up the economic inequality in the U.S. unemployment figures. The analysis of the unemployment figures for the last quarter of 2009 shows that the destruction of American jobs brought about by the reckless actions of our moneyed class, does not affect American workers equally.

Unemployment is higher for Lower Income People

People in the lower income class with annual incomes of $12,499 or less have 10 times more unemployment than those in the upper class making $150,000 or more per year. The report states “A true labor market depression faced those in the bottom of the income distribution; a deep labor market recession prevailed among those in the middle of the distribution and close to a full employment prevailed at the top. The underemployment rate adds even more disparity. It is 20.6% for the lower classes and only 1.6% for the highest.”

The figures also show the further deterioration of the middle class.

Annual Income
$150,000 or more = 3.2% unemployment rate
$100,000 to $149,999 = 8% unemployment rate
$75,000 to $99,000 = 5% unemployment rate
$60,000 to $75,000 = 6.4% unemployment rate
$50,000 to $59,000 = 7.8% unemployment rate
$40,000 to 49,000 = 9% unemployment rate
$30,000 to $39,999 = 12.2% unemployment rate
$20,000 to $29,999 = 19.7% unemployment rate
$12,500 to $20,000 = 19.1% unemployment rate
$12,499 or less = 30.8% unemployment rate

Local unemployment (February figures from State Labor Department)

In Broome and Tioga Counties there are 12,000 people who are unemployed. This is a rate of 9.5%. The unemployment rate for all of New York State in the same period was 9.3%.


Where are the Jobs?
The unemployment rate would actually be in the 16-17% if the number of under employed people (those working part time but needing and wanting full time work) were included. Add to this figure those discouraged workers, those who have dropped out of the labor market entirely because they have given up the search for jobs.

It is not uncommon to hear, “I’ve applied, in person, on-line and by letter for more than 40 jobs. I only got a reply from three employers that the job was filled. There’s nothing out there. It‘s very discouraging.”

Obama

Freedom of Speech

Public Transportation is a Right!

More Money for Mass Transit

The BC Transit system is NOT functioning well for its riders. These riders are people who make the county function. They are a good part of the working infrastructure of the region, yet they are not allowed to have safe, affordable, and on-time transportation. The only way BC Transit can become steady and reliable is to increase the frequency of scheduled bus trips and reduce fares. Furthermore, in order to put these measures into effect, a consistent, dedicated funding stream will be required.

Transit Cuts Coming?

Right now word is spreading on the street that the evening and Sunday BC Transit service will be drastically cut back or discontinued. What will happen to the people who work evenings and weekends? Will they lose their jobs at hospitals, clinics, restaurants, stores, and other businesses that keep the world functioning while others are enjoying free time? Additionally, is it morally right to take peoples’ freedom of religion from them because the buses no longer run on weekends, thus forcing them to stay away from their houses of worship? All these things are probable if the bus schedules are so drastically cut. Instead, bus schedules should be increased during peak usage hours (6:00 to 10:00 am, and 3:00 to 7:00 pm) and left at steady 30 minute intervals the rest of the time, including evenings and weekends.

Higher Fares Mean Fewer Riders – Encourage Mass Transit with Lower Fares

If bus schedules are cut as feared, fares will become more expensive in order to make up the lost revenue for the county. How can this be right? BC Transit should be considered a “public good,” just like police, firefighters, sanitation and public education. When we need police or firefighting services, we do not receive a bill. Those services are paid for by taxes and are considered basic necessities. Transportation is also a primary need for everyone, yet it is becoming more and more expensive. People who ride buses do not do so because they enjoy the ride. They are often people who cannot afford the costs associated with vehicle ownership, or prefer not to put themselves into debt in such a manner. In the current economy, the number of people finding themselves facing these situations will continue to rise. The current bus fare system is one of the most ridiculous forms of taxation – a user tax. Instead, fares should immediately be reduced. Mass transit can never rely solely on the fare box for revenue. While a fare is necessary, it cannot keep rising until it becomes unaffordable to the people who need this form of transportation.

Transit Subsidies from Government & Business

In order to fund the BC Transit system so everyone gets a reasonably priced ride on safe, on-schedule equipment, all levels of government must take active roles. The federal government must develop a spine and the will to create a subsidy policy for mass transit. President Obama is requesting $700 billion for war and defense-related activities in the coming year. Some of that funding should go instead to programs Americans really need, and mass transit is one of those. New York State must also pick up the ball and add its share of subsidization to the federal funds. Finally, the elected Broome County officials must take seriously the responsibility they already have for mass transit in our region. Perhaps a transit tax should be paid by businesses which have the benefit of BC Transit delivering workers to their doors. Some of these businesses are, ironically, the same ones which have requested that bus stops be removed from their vicinities. The ultimate combination of funding sources utilized must ultimately dovetail to create a consistent, renewable and reliable revenue stream.

Riders & Workers Unite to Make System Work for our Community

As it currently stands, the BC Transit logo is quite appropriate, with the caveman dragging Broome County back to the stone age of transportation. Some also think our current busing situation is comparable to a runaway train headed down a very dark tunnel toward a steep cliff. We need to be clear on the following: We have high regard for the BC Transit workers. We do not hold them accountable for the lack of a bus schedule reflecting real life needs, or any other system limitations. We support their ability to earn a living wage like all workers, and we welcome their input on how to better our BC Transit. We know the transit workers have more in common with the riders than with the transit administration or the county government that mismanages this vital regional resource. In future editions of this newspaper look for readers’ input, as well as information regarding bus schedule petitions, data from the BC Transit budget, and updates about the new consolidated bus terminal.

YOU HAVE A RIGHT TO BE HEARD!!! OUR JOB IS TO BE YOUR VOICE!!! If you have information or a story to share about BC Transit, please write to us at: People’s Press, c/o PO Box 204, Binghamton, NY 13905. If you prefer to remain anonymous, we will honor your wishes.

The False Promise of Health Care Reform, and An Alternative

Seven Drawbacks of Health-Care Reform

By Jim Petras

While our local Congressman, Maurice Hinchey and Senator Charles Schumer joined President Obama in celebrating the passage of the new health care bill, the working people of Binghamton will see few benefits and many drawbacks from the legislation. There are seven especially harmful aspects to this bill, which will become obvious to any working man or woman in the Southern Tier.

1. The bill excludes almost half of the currently uninsured working men and women in the US from access to any affordable coverage for at least the next 9 years – affecting at least 23 million of us.
2. The bill requires millions of workers to buy costly private plans, which will cost between 10% and 20% of their income and will at most only cover 70% of approved medical costs, leaving them still vulnerable to financial ruin if the worker or a family member becomes seriously ill. Many low and medium wage earners in Broome County and the surrounding Southern Tier of New York will find such policies too expensive to afford or use because of the high co-pays and deductibles. The private insurance giants and Big Pharma will be free to raise premiums and drug prices to ensure their mega profits because the bill gives federal and state regulators virtually no power to prevent price gouging. It is not surprising that the stock of the largest health insurance and pharmaceutical giants shot up after the bills passage.
3. The bill will transfer over $447 billion dollars of public money to the private insurers by drastically reducing Medicare payments for doctors and other professional services, laboratory tests and procedures. This means that medical care for retirees will be significantly cut. The bill intends to rob Peter (Medicare) in order to pay Paul (subsidies to private health insurance industry).
4. Middle class and unionized American workers, who have long sacrificed wage increases in order to obtain full health coverage for their families (the so-called Cadillac Plans), will now have to pay a stiff tax on their work-related benefits.
5. The cost of health care will continue to skyrocket as private insurance and pharmaceutical companies will set prices in order to maximize their profits.
6. Women’s reproductive care and rights will be further eroded because of the ban on health plans covering abortion (even to save the life of the mother) and all other reproductive services. This comes at a time when maternal deaths have nearly doubled; making US maternal mortality figures the worst in the industrialized world.
7. This bill is riddled with loopholes which will allow the health insurance companies to continue to make it difficult for people with so-called pre-existing conditions to obtain the care they desperately need. The proposed fines on insurers who refuse to cover life-saving services are so low that enrollees in need of certain types of care will die.
   
   

What Happened to Single Payer?

Most working people in Binghamton and the surrounding Southern Tier of New York would support replacing this failed and fatal system of private, for-profit health insurance with a system of publicly financed, single payer health care based on an improved Medicare for All as advocated by thousands of physicians, nurses and other health care workers all over the country. This would ensure the delivery of truly universal, equitable, comprehensive and affordable health care to all. It would put the patient, the family and the health care workers in control, rather than the private insurance CEO’s, administrators and their stock-holders. This would cut well over $400 billion dollars a year wasted in the form of ‘administrative costs’ of the private health insurers, a savings which would go a long way to paying for universal coverage. The savings in health care costs per American, which are twice that of the next most expensive country (Switzerland), would increase our competitive position in the world economy. As all the other industrialized nations have discovered, only a single payer system has the power to lower the costs of life saving and life enhancing pharmaceuticals by over 80% via bulk purchasing and direct negotiation with the drug companies.

Majority Support National Health Care System

It is worth repeating that over 59% of US physicians support a national, single payer health system. Currently physicians and other health providers have to spend a huge amount of time and money negotiating with bureaucrats running the thousands of private individual health plans and paying the overhead for extra-office staff and billing agencies – this is time and effort taken from patient care and from the real work your health care professionals love and want to be free to do.

Republicans & Democrats Ignore Unemployment – Jobs with Benefits Disappear

With official unemployment in Broome County reaching 10%, under-employment exceeding 10% and well over 15% of full-time workers without adequate health coverage, the current bill will make no difference to the lives of tens of thousands of workers and their families in this country. The President and the Democrat-controlled Congress have not done anything to tackle the devastating wave of lay-offs, all the while our Democrat Congressman and Senator have wasted over a year cutting deals with Big Pharma and promising huge subsidies to the private health insurance companies in the not-so-fine print of their health care reform bill. The Republican Party is equally responsible for the crises, bailout of Wall Street, and the breakdown of our health system, as was evident when they controlled the presidency and leadership of Congress. Meanwhile, not a single piece of legislation has been passed to create or, at least, retain well-paying manufacturing jobs with full health care coverage. As a result, in Broome County, we have lost 2,400 manufacturing jobs in 2009, leaving us with only 14,500 such jobs as of January 2010 – the lowest on record!

As conditions worsen, in terms of employment and access to medical care, it has become clear to over 80% population nationwide that the current two parties are incapable of addressing the crisis and the needs of the people. The obvious answer is to make a clean-break with a new political movement.

Justice for NYSEG Workers

With a Union-Busting Corporation Now Owning NYSEG, Who Will Stand with the Workers?

By David Duncan

In September 2008, A Spanish National Company named Iberdrola acquired Energy East Corporation, the parent of New York State Electric and Gas and Rochester Gas and Electric Corp. Because Iberdrola is a foreign company, approval for this purchase was required from federal agencies and five New York regulatory agencies. After all the required hearings were held by these agencies, the only built in protection for workers of these companies was that Iberdrola was to maintain the workforce and benefits at current levels for at least 18 months. After that period it was acceptable to beat up on the worker’s jobs and benefits and Iberdrola didn’t waste any time. Iberdrola and the workers union, the International Brotherhood of Electrical Workers, IBEW, had finalized a contract in January 2010. Two months later, Iberdrola demanded a contract amendment which called for 200 NYSEG call center workers to take as much as a 50% cut in pay or the call center would be closed. “There was no good faith bargaining” said one employee. “We had just agreed to a new contract”.

Vote Pits Worker against Worker “I’ll make you an offer you can’t refuse”

The union called for a vote of its members on the cut in pay amendment demanded by Iberdrola but the vote pitted unionized workers against each other. If the approximately 1,700 members throughout the NYS region represented by the union voted to accept the pay cut for the call center workers then, according to some workers, it would open the door to future cuts for all other workers. Also if they voted against accepting the pay cut amendment, another new provision meant that company linemen would be forced to go out on power line jobs with one man in the bucket truck, instead of two. A vote to allow the closing of the call center would mean that those voting didn’t care about the 200 whose jobs would be lost. A vote to keep the call center workers at current pay levels would create a safety issue for the line men. Iberdrola has succeeded in pitting workers against each other. One employee said that “morale is down, tensions are high and many workers are angry at Iberdrola and the IBEW. As workers we have no protection.”

What is government doing? Siding with big corporations or workers?

All of the hearings on the federal and state level over the purchase of the utility by Iberdrola did nothing to protect the people who have done the work that creates a $400 million profit for Energy East last year. Iberdrola’s profits were almost $4 billion in that same period. Democrat Congressman Hinchey and Democrat Senator Schumer sent a letter to the Chairman of the Iberdrola Board of Directors, Jose Ignacio Sanchez Galan. The letter which begins with Dear Jose, states that Iberdrola’s profits is due in large part to the acquisition of Energy East, therefore the burden of achieving company savings should not be put on the backs of ratepayers and workers in New York. “It is important to recognize, state Schumer and Hinchey, that workers in the NYSEG region are struggling to put food on their tables and keep roofs over their heads and significant, abrupt, reductions to the family income could not come at a worse time for these individuals or the region.” The letter also praises the efforts of the union.

Why give Tax Credits for Union Busting Firms?

What will those politicians who worked to approve Iberdrola’s purchase of Energy East do now about the anti-worker actions of Iberdrola? The politicians approved Iberdrola’s package of $54.8 million for Energy East executives affected by the buyout. They approved hundreds of millions in tax credits that Iberdrola will receive from the U.S. government for the development of wind energy. The executive package and wind tax credit will be paid, in part, by workers who now have less pay, finding child care unaffordable, and no job protection. A family member of one NYSEG worker wants the politicians “to give up the Dear Jose crap and do something that will protect the Iberdrola workers trying to put food on their table.”

What Will the Union Do?

Where is the fight for worker pay and jobs? Has the Democrat Party turned to the trade union leadership to suppress the resistance of the working class? This class is being called upon by Democrat and Republicans to take pay cuts and cuts in government services while also making up for the tax breaks and bail out funds given to corporations like Iberdrola, banks, Wall St. etc. The union could work with other unions and residents in the area to press the politicians they have supported, into taking a stronger role in helping the NYSEG workers. Democrats control the city of Binghamton, Broome County, New York State Assembly, NYS Senate, the US House of Representatives, the US Senate and the Presidency. Almost all of these people have been elected with labor money and backing. The union could call upon other unions and the residents of the community to insist on action against Iberdrola which could include a demand that the company get no multi million dollar wind energy tax deals from the government. Maybe residents, in solidarity, could delay paying their energy bills for a couple of months? The IBEW officers could lead the way. Maybe together we could block the Vestal Parkway for a day.

Where Do We Go from Here?

Many workers expect nothing but doom and gloom out of NYSEG in the future. Those that have been here a long time know that this is the beginning of the end. “We can save a lot of dues every week, if nothing can be done.”

Who will stand with the NYSEG workers?